Fund Spy

A Good World-Stock Fund Just Got Better

Alec Lucas, Ph.D.
The following is our latest Fund Analyst Report for American Funds SMALLCAP World (SMCWX). Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days.

American Funds Smallcap World's Morningstar Analyst Rating has increased to Silver from Bronze because it now has a better shot to scour the globe for promising small- and mid-cap stocks.

American Funds' parent Capital Group has long divided itself into smaller subsidiaries to manage money. Two of those, Capital Research Global Investors and Capital World Investors, split this fund's roughly $40 billion asset base until July 2018, when the firm directed assets to Capital International Investors, too. The equity divisions have the same fundamentals-based, long-term-oriented investment philosophy but do not share investment ideas. This adds the potential for greater diversification in the fund's nearly 800-stock portfolio, as of year-end 2018.

Alec Lucas, Ph.D. does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.